scholarly journals The Determinants of Long-term Interest Rates in Eurozone: Taylor Rule and Governance Indicators

2016 ◽  
Vol 9 (9) ◽  
pp. 58
Author(s):  
Imre Ersoy ◽  
Selen Antmen
Keyword(s):  
Interest Rates ◽  
Cross Sections ◽  
Panel Data Analysis ◽  
Control Variable ◽  
Political Stability ◽  
Government Effectiveness ◽  
Governance Indicators ◽  
Regulatory Quality ◽  
And Control

<p>This study aims to search for the determinants of long-term interest rates in the Eurozone. Panel data analysis is employed for 14 Eurozone countries for the period of 2002-2014 to analyze the determinants of long-term interest rates. This study is carried out to find out whether the Worldwide Governance Indicators (WGI), Taylor (1993) rule and also the Eurozone crisis, as a control variable, have an impact on long-term interest rates. As WGI, Voice and Accountability, Political Stability and Absence of Violence/Terrorism, Government Effectiveness, Regulatory Quality, Rule of Law and Control of Corruption are used. The first finding of the empirical study is that inflation gap has an impact on long-term interest rates. Another finding of the study is that Political Stability and Absence of Violence/Terrorism, Government Effectiveness and Regulatory Quality effects long-term interest rates in 14 panel cross-sections. Besides, the analysis shows that the financial crisis in Eurozone as control variable affected long-term interest rates, as would be expected.</p>

scholarly journals Institutional Analysis of Shadow Economy (Study on ASEAN 7 Developing Countries)

2020 ◽  
Vol 15 (1) ◽  
pp. 55
Author(s):  
Ana Rahmawati Wibowo ◽  
Wiwin Indrayanti
Keyword(s):  
Developing Countries ◽  
Rule Of Law ◽  
Shadow Economy ◽  
Secondary Data ◽  
Political Stability ◽  
Government Effectiveness ◽  
Regulatory Quality ◽  
Negative Effect ◽  
And Control ◽  
Control Of Corruption

This study aims to analyze the institutional variables of governance in ASEAN 7 developing countries. The independent variables consist of Voice and Accountability, Political Stability and Absence of Violence, Government Effectiveness, Regulatory Quality, Rule of Law and Control of Corruption, while shadow economy is dependent variable. The data used in this study are quantitative data and secondary data by using program Stata 14, the analysis technique used is multiple linear regression panel data. The results show that Voice and accountability has a negative and significant effect on the shadow economy as well as Political stability, Government effectiveness and Control of corruption on the other side. Regulatory quality has a positive and significant effect on the amount of shadow economy. Meanwhile, Rule of law no significant effect on the shadow economy. Underlying the results, the study arranges some policy to reduce negative effect of shadow economy.

scholarly journals Effect of Governance on Educational Performance in Nepal

2021 ◽  
Vol 11 (1) ◽  
pp. 97-114
Author(s):  
Jiban Khadka
Keyword(s):  
Good Governance ◽  
Political Stability ◽  
Educational Performance ◽  
Line Graphs ◽  
Government Effectiveness ◽  
Secondary Sources ◽  
Multiple Line ◽  
Governance Indicators ◽  
Regulatory Quality ◽  
Control Of Corruption

Good governance often seems to have accelerated educational performance. Stepping onto the contribution of governance to the education, this paper examines the effect of Worldwide Governance Indicators produced by Kaufmann et al. (1999) on Educational Performance (EP) of Nepal during the years from 1996 to 2018. The six indicators of WGIs: political stability and absence of violence, government effectiveness, voice and accountability, regulatory quality, control of corruption and rule of law are used as independent variables, and the educational performance (student learning achievement and education index) as a dependent variable.  The results, based on the data collected from the secondary sources, derived from multiple-line graphs and the regression model shows that the majority of WGIs insignificantly explained the educational performance across the years. One indicator namely government effectiveness is found as a negative significant predictor of EP. The findings of this study suggest to reform in the existing level of WGIs for the better educational performance.

scholarly journals Increasing Supply of Tradable Goods in the Common Market for Eastern and Southern Africa (COMESA)

2015 ◽  
Vol 1 (2) ◽  
pp. 73-117
Author(s):  
Macleans Mzumara
Keyword(s):  
Foreign Direct Investment ◽  
Rule Of Law ◽  
Direct Investment ◽  
Institutional Quality ◽  
Political Stability ◽  
Government Effectiveness ◽  
Regulatory Quality ◽  
Tradable Goods ◽  
And Control ◽  
Control Of Corruption

The author investigated the nature of institutional quality in the Common Market for Eastern and Southern Africa (COMESA) on the basis of voice and accountability political stability, government effectiveness, regulatory quality, rule of law and control of corruption. The author further investigated the existence of a link between institutional quality and factors of production. The results show that capital, entrepreneurship and foreign direct investment are the major determinants of production of tradable goods in COMESA. In exception of Mauritius and Namibia (currently no longer a member) the rest of COMESA member states have very poor institutional quality. This affects their ability to attract foreign direct investment hence production of tradable goods. Voice and accountability, government effectiveness, rule of law and political stability play a major role in increasing production of tradable goods in COMESA. Foreign direct investment is affected by voice and accountability, rule of law and political stability than any other factors. Availability of raw material is affected by government effectiveness, regulatory quality, political stability, voice and accountability and control of corruption. Capital is very sensitive to issues of voice and accountability and control of corruption and regulatory quality.

scholarly journals Causality between Chinese investment in Latin America and the governance indicators

2019 ◽  
Vol 21 (1) ◽  
pp. 6-17
Author(s):  
L. Arturo Bernal Ponce ◽  
Ricardo Pérez Navarro ◽  
Mauricio Ramírez Grajeda
Keyword(s):  
Latin American ◽  
Panel Data Analysis ◽  
Private Investment ◽  
Outward Fdi ◽  
Chinese Investment ◽  
Governance Indicators ◽  
Regulatory Quality ◽  
Indicator Variables

This article analyzes the causal relationship between China’s outward foreign direct investment (FDI) and several governance indicators by performing a panel data analysis for Latin American countries. First, a long-term relationship was found between China’s outward FDI and three governance indicator variables: control of corruption (CC), regulatory quality (QR), and government effectiveness (GE). This result supports the idea that there is a statistical relationship between FDI and the governance indicators. We also found evidence of causality from FDI to CC, implying that after Chinese investment there is a change in the host country’s perception of corruption. In addition, causality from QR and GE to FDI was found. The result is evidence of how outward FDI effects the host country government’s ability to implement policies and regulations which promote private investment and the quality of public services.

scholarly journals Assessing the impact of institutions on economic growth in the BRICS countries

2021 ◽  
Vol 2 (4) ◽  
pp. 30-46
Author(s):  
Ayushi Tiwari ◽  
Tridisha Bharadwaj
Keyword(s):  
Economic Growth ◽  
Institutional Quality ◽  
Political Stability ◽  
Physical Capital ◽  
Government Effectiveness ◽  
Brics Countries ◽  
Regulatory Quality ◽  
And Control ◽  
The Impact ◽  
Control Of Corruption

This study examines the impact of institutional quality on economic performance in the BRICS countries for the period from 2002 to 2019. The panel data study was estimated using pooled OLS and a fixed effect model. The study employed six institutional quality indicators (Worldwide Governance Indicators) which included voice and accountability, political stability and absence of violence/terrorism, government effectiveness, regulatory quality, rule of law, and control of corruption. The study also controlled for conventional sources of growth, i.e. human capital, physical capital, government expenditure, and inflation. All of these factors were positive and significant in our study. The findings also reveal that government effectiveness, regulatory quality and control of corruption had a positive and significant impact on economic growth in the BRICS countries, whereas other institutional variables turned out to be insignificant.

scholarly journals The Number of Tourist Arrivals, Governance and Their Impact on Threatened Bird Species: Worldwide Evidence

2018 ◽  
pp. 28-36
Keyword(s):  
Good Governance ◽  
Bird Species ◽  
Political Stability ◽  
Biodiversity Loss ◽  
Governance Indicators ◽  
Regulatory Quality ◽  
Tourism Sector ◽  
International Tourist ◽  
The Government ◽  
And Control

The number of international tourist arrivals is crucial for the tourism sector. However, there are positive and negative sides of tourism. Unsustainable tourism will result in the destruction of the forest and consequently led to biodiversity loss. The great benefits of forest which is a home for a wide variety of animals and plants which help to stored carbon, preventing the risk of flood and drought to occur, influencing climate change, stabilizing soils as well as providing food and a place for the indigenous people to live. As long as these benefits are being concerned, the role of international community is needed to prevent them from any harm in the future. The government of both the developed and developing nations recognized the importance of sustainable biodiversity for the national ecosystem as well as to the global environment. In this study we also investigate the response of biodiversity loss (measured by the number of threatened bird species on six measures of governance: voice and accountability, political stability and absence of violence, government effectiveness, regulatory quality, rule of law, and control of corruption. The OLS outcomes suggest that tourism exhibit positive relationship with biodiversity loss. On the other hand, the six governance indicators suggest that good governance reduces biodiversity loss. Our further analysis using quantile regression estimates suggest that tourism affect positively biodiversity loss for all quantiles (0.05 0.25 0.50 0.75 0.90 0.95); while governance affect negatively biodiversity loss only at certain quartiles. One main policy implication of this study is that sustainable tourism is important to mitigate biodiversity loss, and effort for biodiversity conservation is supported by this study.

scholarly journals Governance Indicators in the OIC Countries: A Descriptive Study for the Period 1996 – 2018

2020 ◽  
Vol 14 (14) ◽  
pp. 27-86
Author(s):  
Basheer Hazzam Salih Mahdi
Keyword(s):  
Islamic Law ◽  
Political Stability ◽  
Public Governance ◽  
Governance Indicators ◽  
Regulatory Quality ◽  
Aggregate Index ◽  
Islamic Countries ◽  
World Governance Indicators ◽  
Four Levels ◽  
And Control

The study aims to describe and analyze the governance indicators in OIC countries during the 1996-2018 period based on the data of World Governance Indicators (WGI). The descriptive-analytical approach had been adopted for using statistical methods to analyze the level and evolution of governance indicators. The researcher relied on aggregated indicators of governance based on the six sub-indicators of WGI indicators and then classified the level of governance in the OIC countries into four levels. The study reaped a number of results, the most important of them are: i) In general, the level of the aggregate index of governance in the OIC is lower than the world average by 0.62 and 0.70 points in 1996 and 2018, respectively; ii) Most Islamic countries fall within the low level of governance, and there is no Islamic country in the first level of governance (very high); iii) the average of governance index in Islamic countries declined by (0.07) points between 1996 and 2018. The study recommended that Islamic countries shall adopt policies aiming at improving public governance and combating corruption, by taking advantage from the sub-indicators of governance. The researchers also recommended to develop indicators of governance that are compatible with the principles of the Islamic Law and that can be used by the OIC. Keywords: Governance indicators, Islamic countries, OIC countries, Voice and Accountability, Political Stability and Absence of Violence/Terrorism, Government Effectiveness, Regulatory Quality, Rule of Law, and Control of Corruption.

scholarly journals Stay at Home! Governance Quality and Effectiveness of Lockdown

2021 ◽  
Author(s):  
Vincenzo Alfano ◽  
Salvatore Ercolano
Keyword(s):  
Rule Of Law ◽  
Global Scale ◽  
Considerable Time ◽  
Government Effectiveness ◽  
Governance Indicators ◽  
Regulatory Quality ◽  
Governance Quality ◽  
World Governance Indicators ◽  
Set Up ◽  
First Time

AbstractIn order to control the spread of the COVID-19 pandemic, during the first wave of the pandemic numerous countries decided to adopt lockdown policies. It had been a considerable time since such measures were last introduced, and the first time that they were implemented on such a global scale in a contemporary, information intensive society. The effectiveness of such measures may depend on how citizens perceive the capacity of government to set up and implement sound policies. Indeed, lockdown and confinement policies in general are binding measures that people are not used to, and which raise serious concerns among the population. For this reason governance quality could affect the perception of the benefits related to the government’s choice to impose lockdown, making citizens more inclined to accept it and restrict their movements. In the present paper we empirically investigate the relation between the efficacy of lockdown and governance quality (measured through World Governance Indicators). Our results suggest that countries with higher levels of government effectiveness, rule of law and regulatory quality reach better results in adopting lockdown measures.

scholarly journals Hypothesizing directional causality between the governance indicators and economic growth: the case of Afghanistan

2020 ◽  
Vol 6 (1) ◽  
Author(s):  
Mohammad Naim Azimi ◽  
Mohammad Musa Shafiq
Keyword(s):  
Economic Growth ◽  
Rule Of Law ◽  
Time Series Data ◽  
Political Stability ◽  
Wald Test ◽  
Series Data ◽  
Vector Autoregressive ◽  
Government Effectiveness ◽  
Governance Indicators ◽  
The Government

AbstractThis paper examines the causal relationship between governance indicators and economic growth in Afghanistan. We use a set of quarterly time series data from 2003Q1 to 2018Q4 to test our hypothesis. Following Toda and Yamamoto’s (J Econom 66(1–2):225–250, 1995. 10.1016/0304-4076(94)01616-8) vector autoregressive model and the modified Wald test, our empirical results show a unidirectional causality between the government effectiveness, rule of law, and the economic growth. Our findings exhibit significant causal relationships running from economic growth to the eradication of corruption, the establishment of the rule of law, quality of regulatory measures, government effectiveness, and political stability. More interestingly, we support the significant multidimensional causality hypothesis among the governance indicators. Overall, our findings not only reveal causality between economic growth and governance indicators, but they also show interdependencies among the governance indicators.

scholarly journals The Effect of Governance On Entrepreneurship: From All Income Economies Perspective

2021 ◽  
Author(s):  
Mekonnen Bogale Abegaz ◽  
Kenenisa Lemi Debela ◽  
Reta Megersa Hundie
Keyword(s):  
Time Series Data ◽  
Pearson Correlation ◽  
Control Variable ◽  
Political Stability ◽  
Series Data ◽  
Outcome Variable ◽  
Net Income ◽  
Linear Regression Models ◽  
Governance Indicators ◽  
Development Levels

Abstract The purpose of this study is to analyze the effect of governance indicators on Entrepreneurship. Explanatory research design with Pearson correlation and multiple linear regression models were applied. Five-year World Bank data (2014–2018) of 126 countries from all economic development levels were used. Worldwide governance indicators considered are voice and accountability, political stability, government effectiveness, regulatory quality, rule of law, and corruption control. Gross net income was taken as a control variable. To measure entrepreneurship, the number of formally registered limited liability businesses as a percentage of the working-age population, was used. To make highly skewed time series data of dependent variable (entrepreneurship) closer to normal, logarithmic transformation was made and heteroscedasticity of residuals was checked. The finding of Pearson correlation shows that there are strong and significant correlations(r > 0.466, p < 0.01) between predictors and the outcome variable and among predictor variables. Regression analysis was computed after two highly collinear variables were dropped from the model using the VIF test. The study found that the remaining four independent variables and the control variable predict 71.5% of the variance in the outcome variable. Except for voice and accountability, all predictors have their own statistically significant influence on entrepreneurship. Thus, working on each predictor up to the standard application can bring incremental changes in new business formation and entry. The researchers believe that this study is of significant interest to policymakers, program developers, entrepreneurs, analysis, and supporters since it provides useful insight on how governance indicators influence entrepreneurship.

Sign in / Sign up

Export Citation Format

Share Document